Organizational culture and information systems strategic alignment

Abstract

Purpose Information systems (IS) strategic alignment is a significant chief information officers (CIO) and top management issue because of its impact on a firm’s performance and profitability. Previous studies have primarily examined informal dimension’s influence on IS strategic alignment. Nevertheless, a few research works have emphasised cultural dimension’s effect. The purpose of this paper is to empirically investigate and bring out organisational culture’s influence on IS strategic alignment. Notably, it highlights the most significant culture types, according to the Competing Value Framework (Cameron et al., 2006). Design/methodology/approach Empirical setting comprises a quantitative approach using a survey based on a sample of 160 business managers (BMs) of 53 large companies located in Tunisia with international activities and being in the post-implementation operational use phase of their enterprise resource planning (ERP) systems. The partial least square (PLS) method has been used for data analysis. Findings The results provide an empirical evidence supporting a positive and significant organisational culture’s influence on the IS strategic alignment. The findings also show that “Clan Culture” (Internal/Flexibility-oriented culture) positively influences IS alignment along with the strategic priorities. These findings provide guidance and help understand how, through clan culture, the company can contribute significantly to the success of its ERP systems strategic alignment during the most critical phase, namely, post-implementation. Originality/value Despite abundant work related to IS alignment topic, little research, to the authors’ knowledge, has been undertaken in considering organisational culture’s influence. Thus, this research aims to fill this gap and to raise new questions about IS alignment. First, this study puts together organisational culture (through the Competing values Framework) and strategic alignment (through the IS use dimension) in a single research model to analyse four culture types’ direct effect on IS alignment. Second, this study is innovative in its use of the ERP post-implementation as an empirical framework. The post-implementation phase is often played down in research work in favour of the upstream pre-implementation phases. Furthermore, the findings bring together theoretical and practical insights on both IS-business strategic alignment and ERP post-implementation. Thus, future research could emphasise the role of clan culture in the efficiency of ERP systems strategic alignment during the usage phase. Building on these findings, BM, CIO and top management are advised to promote this culture type based on communication, information sharing and the spirit of internal partnership – so that their ERP systems are used appropriately and aligned with the company’s strategic priorities.

IT Process Alignment in Business Strategy: Examining the Role of Transactional Leadership and Organization Culture

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